Costco Wholesale Corporation $COST Stock Position Lifted by Entropy Technologies LP

Key Points

• Entropy Technologies LP increased its Costco stake by 12.6% in Q1, bringing its holdings to 17,785 shares valued at about $17.7 million. Costco is now the fund’s third-largest position and represents 0.8% of its portfolio.
• Costco reported quarterly earnings of $4.93 per share, just below analyst estimates, while revenue came in at $70.53 billion, slightly ahead of expectations. Analysts still expect full-year EPS of 20.42 and maintain a Moderate Buy consensus rating with a $1,059.07 target price.
• The company declared a quarterly dividend of $1.47 per share payable on August 7, implying a 0.6% annualized yield. Meanwhile, institutional ownership remains high at 68.48%, and one insider recently sold shares in a disclosed transaction.

Entropy Technologies LP raised its holdings in Costco Wholesale Corporation (NASDAQ:COST - Free Report) by 12.6% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 17,785 shares of the retailer's stock after purchasing an additional 1,987 shares during the quarter. Costco Wholesale accounts for 0.8% of Entropy Technologies LP's investment portfolio, making the stock its 3rd largest position. Entropy Technologies LP's holdings in Costco Wholesale were worth $17,722,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in the business. Diamant Asset Management Inc. grew its position in Costco Wholesale by 99,278.0% during the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock valued at $672,690,000 after buying an additional 6,720,130 shares during the period. Norges Bank bought a new stake in Costco Wholesale in the fourth quarter worth about $5,195,415,000. Corient Private Wealth LLC raised its position in Costco Wholesale by 838.9% in the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer's stock worth $5,282,182,000 after acquiring an additional 5,472,968 shares during the period. Cardano Risk Management B.V. boosted its stake in Costco Wholesale by 907.1% in the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer's stock valued at $1,539,346,000 after acquiring an additional 1,607,833 shares during the last quarter. Finally, Amundi boosted its stake in Costco Wholesale by 45.0% in the third quarter. Amundi now owns 3,176,606 shares of the retailer's stock valued at $2,893,697,000 after acquiring an additional 986,182 shares during the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Costco Wholesale Stock Performance

Shares of COST stock opened at $935.03 on Friday. The stock has a market capitalization of $414.67 billion, a P/E ratio of 47.03, a PEG ratio of 4.48 and a beta of 0.88. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The firm's 50 day moving average is $965.91 and its 200 day moving average is $979.93. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50.

Costco Wholesale (NASDAQ:COST - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The business had revenue of $70.53 billion during the quarter, compared to analysts' expectations of $70.12 billion. During the same quarter in the prior year, the firm posted $4.28 earnings per share. On average, sell-side analysts anticipate that Costco Wholesale Corporation will post 20.42 earnings per share for the current year.

Costco Wholesale Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be given a $1.47 dividend. The ex-dividend date is Friday, July 24th. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. Costco Wholesale's payout ratio is 29.58%.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on COST. Guggenheim restated a "neutral" rating on shares of Costco Wholesale in a research note on Monday, June 1st. Royal Bank Of Canada initiated coverage on Costco Wholesale in a research note on Monday, July 13th. They issued a "sector perform" rating and a $1,000.00 price objective on the stock. DA Davidson reissued a "neutral" rating and set a $1,000.00 price objective on shares of Costco Wholesale in a report on Thursday, June 4th. The Goldman Sachs Group raised their target price on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Finally, Weiss Ratings cut Costco Wholesale from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, June 23rd. Twenty-two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Costco Wholesale presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,059.07.

Insider Buying and Selling at Costco Wholesale

In related news, Director Kenneth D. Denman sold 885 shares of the business's stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the sale, the director directly owned 4,779 shares in the company, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.10% of the company's stock.

Key Stories Impacting Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Record demand for Costco Gas is driving more store visits, which can support merchandise sales and membership renewals by increasing overall customer traffic. Costco Gas Demand Hits Record as Low Prices Drive Member Visits
• Positive Sentiment: Costco was highlighted as a stock that can hold up if inflation stays elevated, with its membership model and scale seen as a defensive advantage for investors. 2 Stocks Built to Thrive If Inflation Refuses to Fade (COST)
• Positive Sentiment: Analysts continue to view Costco favorably overall, with the company reported to have a “Moderate Buy” consensus recommendation. Costco Wholesale Corporation NASDAQ: COST Receives Consensus Recommendation of "Moderate Buy" from Analysts
• Neutral Sentiment: Some shoppers may be eligible for cash from Costco’s $14 million settlement in Washington, which is a consumer-relations issue but does not appear large enough to materially change the investment case. Some Costco shoppers could qualify for cash in settlement payout
• Neutral Sentiment: Short interest data showed 0 shares reported, offering no meaningful new signal on trading pressure or sentiment.

Costco Wholesale Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

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